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Section 628 of Insolvency Act CAP 53: Conduct of meetings of company and its creditors

    

(1) The main purpose of a meeting convened under section 627 is to decide whether to approve the proposal or that proposal with modifications.
(2) At the beginning of a creditors' meeting, the meeting shall elect one of their number to be Chairperson of the meeting.
(3) At the first meeting of the creditors, the Chairperson shall divide the meeting into three groups for voting purposes, with the first group comprising secured creditors (if any), the second group comprising preferential creditors (if any) and the third group comprising unsecured creditors.
(4) A modification to the directors' proposal may be approved only if the company consents to it.
(5) A modification to the directors' proposal may provide for the replacement of the provisional supervisor by another authorised insolvency practitioner who will act as the supervisor of the proposal if it takes effect as a voluntary arrangement.
(6) If the proposal or a modification to it affects the right of a secured creditor of the company to enforce the creditor's security, it may not be approved unless—
(a) the creditor consents to it; or
(b) if the creditor does not consent to it, the creditor—
(i) would be in a position no worse than if the company was in liquidation;
(ii) would receive no less from the assets to which the creditor's security relates, or from their proceeds of sale, than any other secured creditor having a security interest in those assets that has the same priority as the creditor's; and
(iii) would be paid in full from those assets, or their proceeds of sale, before any payment from them or their proceeds is made to any other creditor whose security interest in them is ranked below that of the creditor, or who has no security interest in them.
(7) Subject to this section, the meetings of the company and of the creditors are to be conducted in accordance with the rules (if any) prescribed by the insolvency regulations.
(8) Either meeting may at any time resolve that it be adjourned, or further adjourned.
(9) As soon as practicable after the conclusion of a company meeting or a creditors' meeting, the
Chairperson of the meeting shall—
(a) report the result of the meeting to the Court; and
(b) immediately after reporting to the Court, give notice of the result of the meeting to those persons who attended the meeting, and to those persons of whom the Chairperson is aware who were entitled to attend the meeting but did not do so.

« Previous:   Section 627 - Provisional supervisor to convene meetings of company and of its creditors          Next: »   Section 629 - Approval of proposal for voluntary arrangement

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